In an unprecedented price pump on July 21, memecoin Dogecoin (DOGE) experienced a remarkable surge. The price of DOGE skyrocketed by more than 10% in a single day, smashing through the $0.07 resistance level and inching closer to the psychological barrier of $0.08.
This surge in price catapulted Dogecoin's market cap from $9.67bn to a staggering $10.66bn, an addition of approximately $1bn in just 24 hours. As a result of this astonishing rally, DOGE entered the top 10 best-performing cryptocurrencies on the daily charts, securing the sixth position, surpassing Solana (SOL) and climbing up to become the 8th-largest asset by market capitalization.
The rise of Dogecoin has been a testament to its enduring popularity as a meme-inspired cryptocurrency, initially created as a joke but propelled to fame by social media hype and influential figures. One prominent backer has been billionaire Elon Musk, whose tweets in support of Dogecoin have consistently generated spikes in interest and price.
While the exact reason behind the recent surge remains unclear, speculation in the crypto community suggests that rumors surrounding Dogecoin's presence in Tesla's payment page source code could be a contributing factor.
Tesla, known for its involvement in the cryptocurrency space, had previously offered Bitcoin as a payment option but later removed it. Interestingly, the source code still includes “dogecoin” as a payment option, sparking interest among Dogecoin enthusiasts and potentially driving the price pump.
Despite its impressive rise, it's worth noting that Dogecoin's value is still heavily influenced by social media hype rather than real-world utility. The meme coin's price has shown volatility in the past and remains a speculative investment.
As for future predictions, analysts are closely watching the $0.075 resistance level. If DOGE manages to break through, it could surge even higher, possibly reaching its previous peak of $0.096 in February. However, should the support level of $0.060 be breached, the meme coin may experience a significant dip, potentially reaching its lowest point in over a year.
At the same time, in April Dogecoin co-creator, Billy Markus, issued a strong warning against investing in cryptocurrencies, stating that it's like “investing in mental illness.”
He specifically criticized NFTs, calling them “even more mentally ill.” His comments echoed concerns raised by legendary investor Warren Buffett, who referred to Bitcoin as a “gambling token” with no intrinsic value.